IMF warns Middle East wars are widening global wealth gap

The IMF’s latest World Economic Outlook, presented in Bangkok, warns that wars across the Middle East are accelerating global inequality. Conflicts in the Gulf, the campaign against Iran and Israel’s actions in Gaza are pushing the gap between economic winners and losers wider, the fund said. It added that climate change, soaring energy prices and the rapid spread of artificial intelligence are further destabilising economies, particularly in low-income nations that cannot afford to secure scarce resources.

The IMF noted that Bahrain, Iraq, Kuwait and Qatar face double-digit drops in oil and gas output, while Saudi Arabia’s growth outlook has been revised downward after recent attacks. World Bank President Ajay Banga emphasized that energy security now equals national security, and IMF chief economist Silvana Tenreyro cautioned that the economy’s resilience is nearing its limits.